Phillips 66 lowers 2021 spending budget after pandemic hit

[December 14, 2020]  (Reuters) - U.S. oil refiner Phillips 66 on Monday set its 2021 capital budget at $1.7 billion, around 43% lower than forecast for the previous year, as the energy industry struggles to recover from the blow of the COVID-19 pandemic.

A Phillips 66 gasoline station in St. Louis, Missouri January 14, 2015, as gas prices dropped across the country over the last three months. Missouri became the first state in over five years to show an average statewide gas price under $2 per gallon. REUTERS/Kate Munsch

The coronavirus crisis dented demand for crude oil and created a supply glut, although prices have recovered from historic lows hit earlier this year as vaccines have started rolling out across the world.

Phillips 66's 2021 refining capital budget of $776 million includes pre-construction costs related to the company's plans to reconfigure its San Francisco Refinery in Rodeo, California, to produce renewable fuels.

Including contributions from affiliates, the company's adjusted 2021 capital program will be about $2.38 billion, below 2020's forecast of $2.9 billion.

(Reporting by Arunima Kumar in Bengaluru; Editing by Ramakrishnan M.)

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